A £16 million Scottish Government package to help first-time buyers is little more than a “token gesture,” it has been claimed.
The funding, unveiled as part of last week’s budget, is aimed at assisting people on to the property ladder and kick-starting construction on new housing.
Peter Ryder from Tayside Solicitors Property Centre (TSPC) said it would be unlikely that the move would substantially affect the region’s market.
“Anything coming out that is designed to assist first-time buyers is to be welcomed,” he said, “but I don’t think this will have a significant effect.
“Some individuals will maybe benefit from the scheme but what we really need to see is the government putting pressure on the banks to get lending back up to over 90% on mortgages.
“A lot of first-time buyers in Tayside are struggling to come up with a 10% deposit, even for an £80,000 flat. It can be a lot of money to find.”
Around £10 million of the funding will go into a loan fund, which the government claims will help to speed up the construction of 2500 houses across the country. The remaining £6 million will be split in half, between a shared equity scheme for rural first-time buyers and a plan designed with builders to help low-income families buy a home.
Mr Ryder said that people buying for the first time in Tayside would traditionally opt for flats or small houses in larger towns or cities, to get better value for money, adding, “They tend to go for more central locations.”
TSPC has over a 90% market-share in Dundee and Angus, with more than 40 solicitor firms registered with the body.
Last year solicitor members sold over £450 million of property.
Photo used under a Creative Commons licence courtesy of Flickr user Diana Parkhouse